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Buying a home is one of the most significant decisions in a person's life. It's usually the largest purchase you'll make and involves a long-term commitment, so it's important to get it right.
Vishal Garg, founder and CEO of Better.com, joins this week's episode of Financial Freestyle with Ross Mac to discuss how his company is streamlining the mortgage process and what buyers should consider when purchasing a home.
Like many entrepreneurial ventures, Better.com started with a personal pain point. "I started Better.com because I went through the mortgage process with my wife... we were successful finance professionals, and we were like, 'This is so complicated,' like, 'How do I get pre-approved?'" recalls Garg.
A decade later, Garg is leading his mortgage company with backing from some of the world's largest investors, including Goldman Sachs and Kleiner Perkins.
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"I think homeownership is one of those things where it's not just an asset that you own, but it's also an asset that you enjoy," says Garg, highlighting the often-overlooked benefit of homeownership and securing a fixed long-term mortgage rate.
"Every month, you know exactly how much you have to pay for housing... So that allows you to save," Garg continues. "Your home becomes a vessel for savings, and it enables long-term financial planning."
Americans today are sitting on over $35 trillion of home equity, according to the Consumer Financial Protection Bureau.
"[Homeowners] can use it to... start a business. They can use it to send their kids to college. You can do all of these things that are long-term investments in your future because you invested in your home," says Garg.
Nearly half of American homeowners were "equity rich" in the fourth quarter of 2024, meaning their home loan balances were no more than half of their homes' total values.
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This post was written by John Tejada.